Section: GENERAL ACCOUNTING
|Section 3000 Policies|
Policy Number: 3102.03
Policy Title: Acceptance of Cash and Cash Equivalents
Policy Effective Date: April 1, 2011
Last Revision Date: September 19, 2012
(see revision history)
It is the policy of the CSU that cash and cash equivalents be collected and documented in a timely, controlled and cost-effective manner. Each campus must prepare written procedures to implement this policy.
The Chief Financial Officer (CFO) of each campus or his/her delegate will designate and authorize official campus cash collection points. Cash and cash equivalents will only be accepted at official cash collection points.
A campus may accept only U.S. currency and coins when cash is received.
Each campus must comply with Federal and State Laws and Regulatory requirements governing transactions involving currency and coin (see Resources and References section below for requirements).
All checks must be payable to: “California State University”, “The Trustees of California State University”, the campus name (i.e. San Diego State University) or reasonable variations thereof. All invoices or other documents requesting payment must clearly advise payers of this requirement.
Items not payable to the campus must be listed and forwarded to the appropriate entity (if identifiable), or returned to the payee no later than 30 days from receipt.
Checks accepted by the University must contain all legally required elements including:
- Dating no earlier than 180 days prior to the day of acceptance (unless a shorter time period is clearly marked on the face of the check) and no later than the day of acceptance.
- Legible and consistent amounts, both the numeric and written.
- Valid signature by the account holder.
Checks bearing the legend “Payable/Paid in Full” are not to be accepted.
Checks drawn on foreign bank accounts that are not acceptable at face value by the depository bank (e.g., if drawn in a foreign currency) must not be recorded, but must be sent to and approved by the depository bank for collection within 30 days of receipt.
Checks, including mailed remittances, must be restrictively endorsed for deposit (endorsement stamp or its mechanical equivalent) or electronically deposited as soon as possible but not later than the close of business on the day of receipt.
When the proper account(s) to which a check should be credited cannot be readily determined, it will be deposited and recorded as “un-cleared collections” and copies used to research correct recording instructions.
An official CSU cash receipt should be recorded for each collection. A collection not recorded on cash register or point of sale equipment, including mailed payments, can be recorded on a valid pre-numbered, multiple-part Cash Receipt or a mailed payments log. The receipts must be used sequentially. Receipt stock shall be kept secured, inventoried and regularly reviewed to prevent and detect alteration. Mailed payments log should be reviewed and reconciled periodically.
In circumstances where it is not practical (e.g., event parking) to process a receipt, other mitigating controls must be implemented, such as pre-numbering of tickets, ticket inventory reconciliations, and ticket count reconciliations against cash collected.
If the original receipt is lost, destroyed or otherwise unavailable, the campus procedures may authorize substitution of a duplicate receipt that contains all of the elements of the original receipt and is clearly marked “duplicate”, “copy” or some other designation that indicates that this item is not the original document.
Electronic Based Cashier Point of Sale Equipment must meet the University security and operational standards, which are:
- All cash registers and point of sale equipment must produce a cash receipt with a unique campus identifier assigned to each customer.
- The cash-recording equipment must be controlled by unique consecutive numbers generated automatically and recorded with each transaction, as well as imprinted on the customer receipt.
- The numbering mechanism providing consecutive transaction number control must be accessible only to the manufacturer's service representative or appropriate personnel who are independent of that cashiering station.
- Each cashier must be assigned a unique user ID, login, password, and cash fund not accessible by or shared with other individuals.
- All cash registers and point of sale equipment must produce session closeout audit totals for verification to receipts.
- All cash registers and point of sale equipment must require a supervisor’s approval in order to process refunds or voids after a completed sale.
Benjamin F. Quillian
Executive Vice-Chancellor/Chief Financial Officer
Approved: September 19, 2012
APPLICABILITY AND AREAS OF RESPONSIBILITY
RESOURCES AND REFERENCE MATERIALS
The ICSUAM policies linked in this section contain additional policy statements that should be considered in the campus procedures on this topic:
|ICSUAM Policy Link||Related Topic Addressed in this Policy|
ICSUAM 8000 – 8095 Information Security
The following policies in this group may be most relevant: 8025.0 – Privacy of Personal Information; 8040.0 – Managing Third Parties; 8060.0 – Access Control
|Requirements for Cashiering Systems|
|ICSUAM 3101.02 –Campus Administration of Systemwide Cash Management Policy||Document Retention|
Sound Business Practices:
Laws, State Codes, Regulations and Mandates:
The Internal Revenue Service (IRS) requires tax-exempt education organizations to report cash transactions exceeding $10,000 (single transaction or accumulated by multiple transactions) received in the course of a trade or business, even if the income is not subject to the unrelated business income tax. The reporting requirement applies only to cash transactions. A Campus receiving a cash transaction for more than $10,000 must complete and file IRS form 8300, Report of Cash Payments over $10,000 Received in Trade or Business, with the IRS on or before the 15th day after the date of the cash transaction, or two or more related business transactions that occur within a 15-day period. Consult IRS Publication 1544, Reporting Cash Payments of over $10,000, for more information.
COGNIZANT OFFICE(S)CO Manager:
Mr. Robert Eaton
Senior Director, Financing & Treasury
CSU Office of the Chancellor
Ms. Gay Kvilhaug
Ms. Maribeth Bradberry
Ms. Nancy Suarez
Director, Student Financial Services
Ms. Jan Burnham
Student Financial Services
Ms. Gina Curry
Director & University Bursar
Ms. Cora Wong
Director, Student Financial Operations
Ms. Caryl Vickers-Harper
Assistant Director & University Cashier
CABO, FOA, FSAC and Student Accounts Receivable (SAR).